India s reliance on Chinese industrial products like telecom, machinery, and electronics has increased in the last 15 years. China s share in India s imports imports of these goods has surged from 21 percent to 30 percent. Beyond economic concerns, the rise raises concerns about potential impacts on national security, broadening the scope of the issue beyond purely economic dimensions.
India s imports from China saw a 3% decline in calendar year 2023 compared to 2022, according to the commerce and industry ministry. Meanwhile, exports to both China and the EU increased by 7.1% and 2.1%, respectively, during the same period. This announcement follows a recent report by the United Nations Conference on Trade and Development (UNCTAD) showing that India s trade dependence on China and the EU increased in 2023.
Hindalco Industries, Shyam Sel & Power Ltd, Shree Venkateshwara Electrocast, Ravi Raj Foils, GLS Foils Product and LSKB Aluminium Foils have filed the application on behalf of the domestic industry seeking the probe.
A section within the government is in favour of a more nuanced approach in using tariffs as a diplomatic tool, failing which there is a possibility of the gains of India’s manufacturing-focused thrust that include schemes such as Production-Linked Incentive (PLI) being squandered away.